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foong
24/02/2009 11:03:58
Re: Retrenchment Benefits

Dear Mr Siew,

Now my company having in house cleaners, but my boss want to outsource. We want to pay them Retrenchment benefits, can I know how the calculation? (e.g. basic salary RM550 per month; year of service 7 years)
Is it salary based on the basic or include overtime?

Please advise
Thank you
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KL Siew
kl_siew@yahoo.com
24/02/2009 14:07:02
In my opinion, everything is included, allowances, overtime and so on. You just add up all her earnings in your payroll for the past 12 months and divide it with 365 days and multiply with 7 x 20 days.

You may ask the Labour Department for their opinions.
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foong
24/02/2009 15:04:21
Dear Mr Siew,

Is it the past 12 months salary is from Jan 08 to Dec08 OR Feb08 to Jan 09 total salary?
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KL Siew
24/02/2009 15:51:39
Previous 12 months from date of retrenchment.
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foong
25/02/2009 11:01:19
Dear Mr Siew,

Is it the gross pay or net pay(after deduct EPF & Socso)?
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KL Siew
25/02/2009 11:33:30
It should be gross pay. You better cross check with the Labour Department.
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